Contingent Liabilities Are

question 22

Multiple Choice

Contingent liabilities are:

• A) recognised in the financial statements unless the possibility of an outflow in settlement is remote.
• B) recognised in the notes to the financial statements because the possibility of an outflow in settlement is remote.
• C) recognised in the notes to the financial statements unless the possibility of an outflow in settlement is remote.
• D) not recognised in the notes to the financial statements because the possibility of an outflow in settlement is remote.

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Definitions:

Two-tailed Test

A two-tailed test is a statistical test in which the area of interest is in both tails of the probability distribution, allowing for the testing of both directions of an effect.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, typically tested against an alternative hypothesis in statistical analysis.

Equality

The state or quality of being equal, especially in status, rights, and opportunities.

Population Variances

A measure of the dispersion of a set of data points in a population data set.